As the end of 2012 approaches, firms are scrambling to complete their wind energy projects to prevent the cost of them from spiking when federal wind tax credits expire next year. Wind farm developers have to complete their wind farms before 2013 for the farm cost to be covered (in part) by the tax credit.

"Congress, which last renewed the credit as part of the 2009 fiscal stimulus package, balked at an extension this year," New York Times reporter Matthew Wald noted. "The tax credit could be equal to one-sixth to one-half of the revenue from the wind turbine, depending on electricity prices in the area of the generator."

While those that are opposed to the tax credit renewal have focused solely on its costs, wind tax credit supporters "say that the wind production tax credit did not cost the taxpayers any money, because it stimulated economic activity, in the form of manufacturing and construction, that was taxed at the federal, state and local levels."

We previously wrote about a CEO’s comments on the longevity of wind tax credits and the importance of that to the economy. As noted then, a one-year tax credit is not enough to facilitate the completion of projects, and is barely enough even to complete the construction of a wind farm. This short and intermittent wind tax credit causes economic shock because of the large scale of wind power plants, which hire people and then have to fire them as the projects are grinded to a halt due to a sudden loss of funding, which will happen again tomorrow.

The CEO noted above said that it should be extended to 3 to 5 years to prevent this problem from happening, and to give people time to complete their projects.

AWEA’s senior vice president said that the tax credit is likely to be renewed next year, however, he is not certain.

Ford just keeps on getting the good news for its hybrid and electric vehicles (EV) as the year winds down. The 2013 Ford Fusion Energi, already named “Green Car of the Year” by Green Car Journal, has now landed a U.S. Environmental Protection Agency rating of 108 miles per gallon equivalent (MPGe) in the city, making it the most fuel-efficient sedan in the U.S., according to the company statement. The vehicle received a combined 100 MPGe rating, with a 92 MPGe highway rating.

Sounds pretty good for a vehicle which could help give some underlying support for consumers who are looking to buy an EV. However, it could be the savings in the pocketbook that ultimately entice people to buy.

Ford projects savings of around $6,850 in fuel costs over 5 years compared to a comparable new car. “The Fusion Energi plug-in hybrid is the exclamation point for Ford’s transformed lineup of fuel-efficiency leaders that now beats Toyota across the board,” said group vice president, Global Product Development of Ford Raj Nair.

This is the third Ford hybrid/electric vehicle which has received an EPA rating of 100 MPGe or greater. Ford's Focus Electric has a combined 105 MPGe combined rating (110 MPGe city; 99 MPGe highway), while the C-Max Energi's combined rating is 100 MPGe (108 MPGe city; 92 MPGe highway). Meanwhile, Ford has put out five electric vehicles in just over the past year, which has helped the company rank number one in overall fuel economy.

Perhaps it also helps Ford's artillery that its fleet of hybrid and electric vehicles comes with some cool features, which include: SmartGage with EcoGuide, providing displays for fuel reading, while showing drivers to maximize their fuel efficiency; voice command for phones and entertainment devices; and monitoring battery charge statuses for EVs and hybrids. Another feature that will help drivers is EV+, which uses the GPS from Ford Sync, along with other software, to learn the most travelled destinations of drivers — so the car can drive more in electric mode.

With all the neat, technical features, plus all the recent accolades, it's no wonder the company is bullish on fourth quarter sales for its family of eco-friendly vehicles. Ford projects to have its highest quarter sales for EV and hybrids this quarter, with approximately 19,000 sales projected. C-Max Energi vehicles alone in October and November became the quickest launch for hybrids of any sort, at 8,030 units sold. That surpassed the record held by the Toyota Camry hybrid back in May and June of 2006, when 7,300 passed through sales lots.

“The response to C-MAX really shows the amount of pent-up demand from a specific market for C-segment hybrids,” said marketing manager, Ford Electrified Vehicles C.J. O’Donnell. “Fusion Energi has a different audience in the midsize sedan market, but delivers many of the characteristics and technologies that make C-MAX Energi so great, which is why we’re anticipating a similar positive response.”

Want to learn more about the history of the Fusion Energi? Check out this interesting video about the roots of the vehicle:

A little over a week ago, at 88 years of age, Hawaiian Senator Daniel Inouye passed on. As a member in the chamber, he was the longest-serving US senator at the time of his death. He was considered a ‘titan’ senator, and in the wake of his passing comes a tribute to his work. It is a fulfillment to his plans for Hawaii — Honolulu’s new rail system. $1.55 billion in transit assistance from the tribute will help build, at long last, the rail transit project Inouye had advocated for. Inouye referred to the $1.55 billion offered by the FTA as "precious.”

RIP Senator Daniel Inouye of Hawaii, WWII veteran

If the recent Honolulu mayoral election had gone differently, and if Inouye weren’t so observant, this project might never had gotten funding. Mayoral candidate Ben Cayetano wanted to scrap rail plans in favor of bus rapid transit. Sen. Inouye saw through Cayetano's idea, saying the BRT plan "would force Honolulu to the back of the line, adding years upon years of continued traffic gridlock," since they would have to start from scratch to secure federal funding. Daniel Inouye's legacy and hopes for Honolulu manifest in the wake of his passing.

At the tribute to Inouye, Transportation Secretary Ray LaHood signed a full funding grant agreement. Inouye's widow’s presence brought his love and life to the memorial as she stood at LaHood's side witnessing her late husband's hopes being made real as the Secretary committed the federal government to $1.55 billion in transit assistance.

Hawaii's First-Ever Rail Transit System

This will be Hawaii's first-ever rail transit system, with 21 stations along a 20-mile stretch, and is expected to relieve traffic on Interstate H-1, "one of the most congested highways in America," according to LaHood. In the 1960s, some suggested building a new freeway to relieve congestion on H-1, but the population rebelled. Fifty years later, their much better idea — rail transit — is finally inching closer to fruition. More than 60 percent of Oahu's population and 80 percent of its employment is located in the designated transit corridor, according to civic affairs journalism website Honolulu Civil Beat.

Breaking Barriers, Serving the US in WWII, Iran-Contra Hearings, Mass Transit, & More

The signers of the FTA grant agreement left a poignant blank space where Inouye's signature would have gone. However, the breath of his story is wide: it is one of a WWII hero who broke barriers, led in diversity, and also proved his dedication to this project.

Thank you to NPR for a wonderful interview with the man, and a tribute covering his work, which extends far beyond WWII, mass transit, and Honolulu. In Congress, he kept a low profile until the Watergate hearings made him a star. When scandal caught up with another Republican president in 1987, Inouye was on TV again, this time chairing the investigation of Iran-Contra – the secret deal by members of the Reagan anministration to sell arms to Iran to fund right-wing fighters in Central America.

Hawaiins Fight For Rail

Inouye isn’t the only one who demonstrated his dedication to this project. The people of Oahu have signaled their own commitment by voting a half-cent tax to fund two-thirds of the new line’s construction. A big thank the taxpayers of Oahu for this bold choice.

Together, we are going to build a modern public transportation system that lives up to the vision of Senator Inouye and serves generations of Hawaiians long into the future. Hawaiin solar, wind, geothermal, and other green initiatives should help, as well.

What were the top solar power stories of 2012? Here’s my list — chime in below if you think differently or have anything to add.

Concentrating solar thermal power plant. Credit: BrightSorce Energy

10. Giant US CSP power plants move along as planned, ready for completion in 2013.

While we didn’t see any big CSP power plants go online in 2012, a lot of work was going on behind the scenes, setting the stage for a boom in such utility-scale solar power plants in 2013. As noted less than a month ago:

The BrightSource Energy Ivanpah project in California is progressing on schedule, with the project (392 MW) coming online in stages during 2013.

Abengoa's Solana 280 MW Generating Station in Arizona is over 75 percent complete and expected to be online in summer 2013.

SolarReserve continues power purchase agreement (PPA) discussions with Tri-State and Xcel for its 200 MW Saguache project in Colorado.

While 2011 saw the start of the US–China “solar trade war,” 2012 saw the bulk of the activity (so far). Beyond US-initiated actions against Chinese solar companies, China retaliated with challenges to US solar policies, European companies initiated action against Chinese solar companies, India launched . Here are some of the most notable posts of the year in this arena:

6. Largest single-unit solar power plant in world is completed in Abu Dhabi, UAE.

At the end of November, Masdar corporation announced that it was about to finish the largest solar power plant in the world (or, to be more accurate, the largest single-unit solar power plant in the world — there are some “solar power plants” that consist of multiple solar projects that are larger). Shams 1 in Abu Dhabi “a generation capacity of over 100 MW of power, and was built with the stated purpose of providing 20,000 homes in the region with electricity,” as Nathan reported at the time. “The project will be followed shortly thereafter by Shams 2 & 3, which are planned to generate similar levels of electricity.”

"Average residential system prices dropped quarter-over-quarter from $5.45 per watt to $5.21 per watt nationally while average non-residential prices declined 15 cents per watt, falling to $4.18."

"Average utility system prices, which are currently at $2.40 per watt, continue to see the greatest reduction in prices of the three market segments covered, falling by 30 percent since third quarter last year."

Some solar companies (and certainly customers) have benefited from the falling price of solar, while others have been squeezed out of the business as a result. Overall, the solar industry needs these price drops, but that doesn’t mean this process doesn’t hurt some companies and, thus, people.

The quotes above are for the US, but similar trends have been seen around the world.

4. US growth continues to be strong, best year ever.

As a result of falling prices, innovative financing models, governmental policies, and clear individual and corporate interest in clean energy, solar power growth continued strong in 2012. In fact, 2012 is sure to be the biggest year of solar growth in the US.

As indicated in the charts above, 684 MW of solar PV were installed in the US in the 3rd quarter, up 44% from the 3rd quarter of 2011. In fact, 2012 3rd quarter installations were the third best ever, only behind the 2012 2nd quarter and the 2011 4th quarter (note that the 4th quarter tends to be the best quarter each year). And the 4th quarter installation total is projected to be huge. Cumulative 2012 installations at the end of Q3 hit 1,992 MW, more than 2011's annual total of 1,885 MW.

Australia doesn’t get nearly the attention that Germany, the US, and China get when it comes to solar energy, but the land down under has developed one of the most attractive solar markets in the world.

Australia passed 2000 MW of installed rooftop solar power in November 2012. With a population of just 22 million (compared to 312 million in the US), that makes US total solar PV capacity of 5,900 MW look quite weak.

Meanwhile, Germany’s government, which currently leans conservative, has been working with big utilities (who are losing considerable market share to households) and fossil fuel interests to challenge the evolution of the country’s clean energy success story.

Here are just a handful of the tremendous German solar power stories of the year:

10. Floating wind turbines take several steps forward. In various ways, it’s clear that a lot of work is still being put into research and development of wind turbines. Floating wind turbine news was particularly noteworthy this year. Here are several notable floating wind turbine stories from 2012:

9.Wind turbines made of fabric; wind turbines made of wood; bigger & bigger turbine — wind turbine technology moves forward. Some other top wind technology stories this year that were good examples of wind turbine innovation include:

8. Obama administration shows strong support for wind power. Obama’s crew at the Department of Energy, Department of Interior, and Bureau of Ocean Energy Management helped wind power along in several ways this year. Here’s some of the top news on this front:

6. Australia implements carbon pricing, driving more wind energy growth in the country. Technically, Australia passed its carbon tax legislation in 2011, but it was implemented in mid-2012. As a result of that and wind power’s low and falling costs, installed wind power has surged this year.

5. Japan implements attractive wind energy feed-in tariff. Perhaps even more significant than the Australian pricing legislation, Japan’s feed-in tariff for wind (not to mention for solar or geothermal) is geared at stimulating some serious wind power growth.

4. Wind power costs keep dropping — cheapest option for new electricity in many places. Wind power is now the cheapest option for new electricity in many regions of the world, thanks to years of technological improvements and market maturation. Meanwhile, the continual improvement of wind power technology is projected to keep reducing the price of electricity from wind for years to come. Quite frankly, wind is a winner, and it is going to keep on winning. Here’s some 2012 news along this front:

3. Largest wind farm after largest wind farm — wind farm records set throughout the year. From Europe to… well, mostly in Europe, there’s been quite a bit of news this year regarding record-breaking wind farms.

Before the East Anglia offshore wind farm is built, however, the Moray Firth wind farm off the Scottish coast, projected to be 1,500 MW in size, could become the largest offshore (or onshore?) wind farm in the world. There was strong indication this year that construction could begin soon.

2. Wind power growing by leaps & bounds around the world. Beyond those record-breaking wind farms above, there has been a ton of other wind power development across this world this year. Here’s a sampling of stories that highlight wind power’s tremendous growth:

1. US wind power PTC is… going to be extended? We think and hope so, but the extension has been delayed for many months due to GOP extremists in Congress, sacrificing thousands or even tens of thousands of US jobs.

Some key stories on these and related topics from throughout the year: